Council approves $173 million reimbursement resolution to advance capital projects
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Summary
Council approved a reimbursement resolution allowing the city to begin capital projects now and reimburse costs from future bond proceeds, with staff citing a $173 million maximum principal amount and listing road bonds, water projects, vehicle replacements and radio upgrades among planned uses.
The Lubbock City Council approved a reimbursement resolution Oct. 28 that lets the city begin capital work now and reimburse expenditures from future bond issuance when market timing is optimal.
City staff said the resolution sets a maximum principal amount of $173 million to cover projects listed in the adopted budget and exhibit A, with an estimated hard cost of about $157.6 million once issuance costs are excluded. Projects identified include segments of Upland Avenue improvements, voter‑approved 2022 and 2024 road bond projects, vehicle replacements (tax notes), the next phase of the West Lubbock water system expansion and planned Lubbock Power & Light projects.
City budget staff explained that reimbursement resolutions permit the city to incur preliminary design, right‑of‑way acquisition and construction‑phase costs before selling bonds. ‘‘We do this so we can go ahead and start construction on projects and hold issuing the debt until the optimal time in the market,’’ the city manager said. Staff noted some projects had other funding sources layered in, such as MPO dollars and ARPA funds.
The council voted to approve item 5.5 after staff presentation and Q&A about the kinds of costs that will be reimbursed — notably engineering, professional services and right‑of‑way acquisition for multi‑year road bond projects.
